Economic determinants of free trade agreements

Journal of Development Economics

CSAE Working Paper Series

Free trade agreements (FTAs) lead to a rise in bilateral trade even if the signatories include developing countries. Furthermore, the percentage increase in bilateral trade is higher for South-South agreements than for North-South agreements. The results are robust across a number of gravity model .

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Review of International Economics

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This study examines the general and contemporary literature refereeing to the impact of Free Trade Agreements, from a theoretical as well as an empirical perspective. It will describe the theoretical structure of models which are used to assess FTA effects on prices, trade volumes, production, consumption and welfare. It highlights the importance of non-tariff, regulatory issues. Subsequently, the study reviews briefly the scope of few selected FTAs which may serve as a potential benchmark. Eventually the Literature Review is focused to identify the Impact of FTA on Exporters in Developing Countries by particularly analyzing the ISFTA and proposed Comprehensive Economic Partnership Agreement. This will further highlight the ways which, the role played by BOI can be re-visited and restructure, to make the agreements beneficial for Sri Lanka and increase Sri Lankan exports to India.

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South Asia Economic Journal